Refer to the accompanying figure to answer the questions that follow.
Price
P3
S
P2
P1
37,500 50,000 68,000 80,000 100,000
Quantity
The market is currently at market equilibrium. If a binding price ceiling of P? is imposed, what would
happen in this market?
There would be a surplus of 30,000 units.
There would be a shortage of 12,000 units.
There would be a surplus of 12,000 units.
There would be a shortage of 30,000 units.